The EIU view

The centre-right government of Sebastián Piñera begins the second year of its rule in 2019. Signs of waning government support are beginning to show, amid fairly high joblessness and a wavering economic recovery. Growth will slow in 2019-20 as the external environment becomes less supportive, and Mr Piñera will look to boost growth via economic reforms. As Mr Piñera lacks a majority in Congress, any law will need negotiation with the opposition to pass.

Free‑trade agreement with China upgraded
As per the deal, China will have three years to withdraw tariffs on wood products, and Chile will immediately cancel tariffs on home appliances, clothing, textiles and sugar products.

Small bomb causes alarm among public
The incident has been labelled as a terrorist attack by the state. The attack will reignite efforts to reform anti-terrorism law, but its checkered past will stall passage in Congress.